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Tuesday, 8 April 2014

Statutory Sick Pay no longer reclaimable from government

With effect from 6th April 2014, it is no longer possible for employers
to reclaim statutory sick pay from the government. See this statutory instrument.

Previously, employers could reclaim any amount of SSP which exceeded 13%
of its national insurance contributions in the month. The rationale
for abolishing it is that it gave employers an incentive not to
encourage long-term sick employees to return to the workplace.

The money saved (estimated at £50m a year) will be put towards the new
Health & Work Service, due to start in 2015, which will help
employees and employers put together plans to facilitate a return to
work. Here's a really good article on the new Health & Work Service.

Daniel Barnett is a barrister at Outer Temple Chambers, with over 15 years' experience defending companies facing employment tribunal claims and associated commercial disputes. He is listed as a leading employment barrister in the ‘Legal 500′, and described in the Times Law Supplement as having “carved out a strong reputation”.

Daniel regularly advises and represents large and small businesses in discrimination claims, TUPE problems, team moves, removal of confidential business information, and unfair dismissal disputes. He has been appointed as employment law advisor to Acas since 2004, and is the author or co-author of seven legal textbooks.